Minutes of the Board of Directors Meeting
November 17, 2000

The Board of Directors of the Lancaster County Solid Waste Management Authority met on Friday, November 17, 2000 at 7:30 A.M. at the Authority office, 1299 Harrisburg Pike, Lancaster, PA.

ATTENDANCE

Board of Directors present were: Chairman Frost, Ebel, Hammel, Kassees, Musser, Spangler, Varljen and Wood. Absent was Clark. Staff present were: Warner, Forster, Garner, Lausch, Norris, Olson and Dougherty. Also present were: Solicitor George T. Brubaker, Hartman Underhill & Brubaker; Glenn Hoag and Tom Wilton, Ogden Martin Systems of Lancaster; Ned Wehler and Steve Fulton, ARM Earth Resource Engineers and Consultants, Hershey, PA; Ad Crable, Lancaster New Era, a representative from WGAL TV-8, and citizens as listed on the sign in sheet attached.

APPROVAL OF THE MINUTES

On motion by Kassees, second by Hammel and unanimous vote, the Minutes of the September 15, 2000 meeting were approved.

Chairman Frost reported that there was an Executive Session held on Thursday, November 16, 2000 to discuss personnel and real estate matters.

PURCHASE OF REAL ESTATE OPTIONS

Chairman Frost called on Jim Warner, who gave background information on the Authority's current agreement with the County and the Authority's integrated waste management system.

He explained that in order to meet obligations to the County, it is necessary to begin planning for additional landfill capacity because, currently, the Frey Farm Landfill is projected to be full in the year 2018.

The Authority approached Manor Township, who was in the process of rezoning, and asked if it would be receptive to extending the current landfill area.

The Authority commissioned an exhaustive study to investigate all of Lancaster County to see if there was another site that would be conducive for a landfill. Based on the conclusions of the study and the fact that the Manor Township land had been rezoned, the Authority began negotiations with the primary owners. Those negotiations took place over a period of approximately the last six months, and an agreement was reached with the primary landowners within the past two weeks.

In today's environment in the solid waste field, it is virtually impossible to permit a Greenfield (new) Landfill, especially in Pennsylvania. Any permits being granted by the Department of Environmental Protection are for expansions. The Authority is committed to expanding its operations in its current location.

The Authority has shown its commitment to Manor Township, and has tried to be a good neighbor by insisting that the landfill be run in the best way possible. Other investments include donating 20 acres to the Township for a Community Park, and recently contributing over $280,000 in site grading services to prepare for the development of the Park. Also, the Authority has committed $75,000 for the restoration of the Reiber House.

The Citizens Advisory Committee met on November 16, 2000 to be briefed on the pending 2001 budget and the pending real estate options related to land adjoining the Creswell Landfill. The CAC requested this statement be entered into the record:

"In the best interest of all residents of Lancaster County, the Citizens Advisory Committee (CAC) to the Lancaster County Solid Waste Management Authority (LCSWMA) hereby strongly endorses the efforts to take action concerning landfill expansion which is consistent with sound long term planning necessary in solid waste management. This is consistent with the Authority's agreement with the County of Lancaster to provide an integrated solid waste management system to the residents of Lancaster County through the year 2030."

Warner recommended that the Board approve Resolution No. 2000-4.

Board of Director Secretary John Kassees read Resolution No. 2000-4 in its entirety.

Chairman Frost opened the meeting for public comment. (responses follow all comments)

Ron Harper - Mr. Harper expressed his disappointment in the Authority Board and Executive Director for the way they handled this issue.

Melvin Hess - (Attorney for property owners within the rezoned area.) Mr. Hess requested that the Resolution be tabled until the zoning issue is resolved and negotiations are held with the other nine landowners.

Jim Huber - Mr. Huber commended the Authority for their operations over the years. Mr. Huber noted his disappointment with the Authority over not negotiating with all landowners and he recommended the Resolution be tabled.

Donna Bare - Ms. Bare stated she should be able to say what happens to her property.

Larry Kirchner - Mr. Kirchner stated an industrial site should be used for a landfill.

John Haser - Mr. Haser asked the Authority to discuss what other areas have been investigated for a landfill site and requested the Board table Resolution No. 2000-4.

Ed Kladky - Mr. Kladky asked 1) if the Authority is concerned about the 1986 promise made not to expand the landfill; 2) why did the Authority negotiate with just one landowner; and 3) will it reveal the price in the agreement.

Mary Glazier - Ms. Glazier asked 1) if the decision to ask for rezoning was made at a public meeting or in an executive session; 2) if the Resolution adopted in June 2000 was done so at a public meeting 3) when was the decision made to talk to Manor Township about rezoning; 4) if you remember the condition not to expand the Landfill and 5) if you discussed at that time that condition with the supervisors or employees of Manor Township.

Mike Bare - Mr. Bare asked how the decision was made to negotiate only with the Barley family.

Fred Baum - Mr. Baum asked why the Authority can't use the Narvon Mine or the Landfill north of Manheim in the future.

John Haser - Mr. Haser asked if Mr. Rob Barley was involved in negotiations while he was sitting on the Planning Board.

Clabell Kladky - Ms. Kladky stated that if the agreement signed by the Authority and Manor Township can be negated, then no one's word is worth anything.

Larry Kirchner - Mr. Kirchner asked how long the landfill expansion had been planned.

Jay Brenner - Mr. Brenner asked what are the circumstances that the landfill would be filled by 2008.

There was no further public comment.

Mr. Ebel moved to adopt Resolution 2000-4. Second by Hammel. A lengthy discussion by the Board of Directors followed.

Chairman Frost called on Attorney George Brubaker to explain the 1986 commitment not to expand the landfill. Mr. Brubaker responded, noting that zoning is a governmental function and is subject to change. The original condition imposed by the Zoning Hearing Board in 1986 was part of the approval for the Frey Farm Landfill.

Mr. Warner responded to comments as follows:

Regarding whether long term planning should have started back in 1986: at the time we started landfilling at the Frey Farm Landfill, we anticipated it would last 20 years. We are trying to address long term landfill disposal needs.

Our decision to negotiate with the Barleys was based on the fact that the Barleys et. al., own 284 acres of land within the footprint of the proposed expansion. It made no sense to talk to the other nine property owners until we had an agreement with the owners of the 284 acres. If we would have come to an agreement with the nine and not with the one who owned 284 acres, it would have been a moot point.

The Authority is committed to fair negotiations over due time. We are going to let residents dictate timing. We understand that they feel they may be negatively impacted. The property values are not damaged, and, for the record, the Authority guarantees no property values would be diminished.

The Board of Directors passed a resolution on June 16, 2000 which authorized the Executive Director, in conjunction with the Solicitor, to pursue Landfill expansion.

The decision in August to proceed with our long term plan and speak to them about zoning changes was a decision of the Executive Director and Staff. It was management's job to know that Manor Township was in the midst of township rezoning, it was part of the course of normal business.

Regarding remembering the promise made in 1986 at the zoning hearing board - this item was not discussed.

Rob Barley was one of the people who participated. There was no discussion at all with the Planning Commission.

The Authority will work with every property owner for a fair arrangement. We could have waited many more years and just given five years notice.

Regarding the circumstances that would shorten the Frey Farm Landfill by ten years: these are calculations made in case the RRF becomes inoperable for whatever reason, and we would have to accelerate the use of the landfill. If we did not have a Resource Recovery Facility and Recycling, the Frey Farm Landfill would be full today.

Regarding other sites for a Landfill, Mr Ned Wehler, President of ARM Group, explained how the site in Creswell is the best site to Lancaster County to accommodate a landfill.

Mr. Wood called for the question. The Board unanimously adopted Resolution No. 2000-4. Frost noted that Board Member Donna Clark was absent but she had indicated her support of the Resolution.

The Board of Directors recessed at 9:15 AM.

The Board reconvened at 9:30 A.M.

FINANCE DEPARTMENT - Olson reported on the following:

• LCSWMA Preliminary Results Actual vs. Budget - All Programs for the Month and Ten Months Ended October 31, 2000.
  
  

• LCSWMA Accounts Receivable Report and Past Due Detail Analysis as of October 31, 2000
  
  

• Approval of Disbursements - On motion by Musser, second by Varljen and unanimous vote, the Summary of Disbursements for September and October 2000 in the total amount of $7,545,828 were unanimously approved.
  
  

• Audit Committee - Chairman Frost appointed Hammel and Spangler to the Audit Committee

EXECUTIVE DIRECTOR'S REPORT - Warner reported on the following:

• Operating Results - The operating surplus for the month was $329,709, after allocating $850,000 to reserve funds. Strong trends in tipping fees and investment earnings are responsible for the surplus. On the negative side, electric revenue suffered severely for the month, coming in $296,000 under budget due to an eight day unscheduled turbine outage.
  
  

• Haulers Meeting - The Annual Haulers meeting was held on November 9^th. All of the haulers that attended were very satisfied with the level of service they are receiving at our facilities. Of course, they were pleased to hear about the proposed rate reduction of $2.00 per ton to the refuse tipping fee.
  
  

• Debt Rating - Standard & Poor's has upgraded the Authority's debt rating from BBB to A-. This upgrade reflects the satisfaction with our performance since the debt refunding in March 1998. We will be contacting Moody's Investor Services to get them to upgrade their coverage on us as well.
  
  

• Resolution No. 2000-3 - On motion by Wood, second by Kassees and unanimous vote, Resolution No. 2000-3 was adopted. The Resolution approved and adopted the 2001 Operating Budget, the 2001 Capital Projects and Equipment Budget, and the 2001 Rules and Regulations.

• Bitner Residence Purchase - On motion by Wood, second by Musser and unanimous vote, the Board approved executing the Purchase Agreement for the Bitner Residence.

ADMINISTRATIVE SERVICES DEPARTMENT - Lausch reported on the following:

• Waste Stream Management - The Summary Tonnage Report - Actual Results vs. Budget for the Month and Ten Months Ended October 31, 2000 was reviewed. Total revenue tons received for processing and/or disposal at Authority facilities in October were 56,826 tons. Year-to-date total system tons are 549,025, or 14% ahead of budget.

• Solid Residual Waste - A meeting was held with Burnham Corporation to discuss a new three year Agreement.
  
  

• Liquid Residual Waste - During October, 619,960 gallons of waste were delivered to the Liquid Treatment Plant, the most gallons received in a single month this year. Revenue for the waste was $31,189, or $7,384 under budget. Revenue fell short because we had budgeted for a clean out event which did not occur.
  
  

• Recycling - On November 18, the Authority will participate in an America Recycles Day promotion at the Home Depot. The Lancaster store is the official PA host for 2000 and may be visited by the Lt. Governor.
  
  

• Insurance Renewals - The Business Travel Accident Policy was renewed. The policy provides $100,000 per occurrence and $1,500,000 aggregate coverage to employees and Board members while traveling on Authority business.
  
  

• Compensation/Benefits - Work continues on updating the job descriptions for each position in the Authority. Also, annual Employee Evaluations/Appraisals will be performed in November.

The contract for our Employee Assistance Program has been renewed with Life Management Associates. The cost this year for core services is $3,513.75.

OPERATIONS DEPARTMENT - Garner reported on the following:

• Landfill - Placement of select waste over the floor of Cell 4D has been completed. With Cell 4D now "covered", we no longer need to operate two separate filling areas.
  
  

• Safety - There were no reportable accidents or injuries in October. All three facilities earned a free lunch by working a full month with no accidents or injuries.
  
  

• Purchase of Replacement Roll-Off Containers - On motion by Hammel, second by Kassees and unanimous vote, the Board awarded the contract for the purchase of six roll-off containers to Eagle Equipment Corporation for the bid price of $20,550.
  
  

• Purchase of Replacement Pickup Truck - On motion by Varljen, second by Ebel and unanimous vote, the Board awarded the contract for the purchase of a new pickup truck to Hondru Ford, Inc. for the bid price of $24,356.

RRF CONTRACT ADMINISTRATION DEPARTMENT - Forster reported on the following:

• Site Operations - Electric revenues for October were $879,125, or $296,875 below budget, due to an unscheduled turbine outage. The turbine was down nearly eight days to repair a steam inlet valve, resulting in a loss of approximately $297,000 in electric revenues to the Authority.

A total of 29,929 tons of waste was delivered to the facility in October, or 3% less than last month.

• Regulatory Activities - Randy Weiss visited the site on October 19 for a routine inspection. His report did not contain any operational violations.
  
  

• Other Activities - Craig Davis of R.W. Beck, our RRF consultant, was on site from October 10 - 11 to inspect the boilers and perform other work related to the annual facility audit.

A preliminary partial report has been received on the fall stack testing showing results below permit level. Final results will be available in 30 days.

TECHNICAL SERVICES DEPARTMENT - Norris reported on the following:

• Capital Project Administration - We have received the results from sampling at the Frey Farm Landfill for landfill gas constituents. The results indicate we continue to be in compliance with all permit requirements and are not emitting landfill gas parameters in excess of any regulated standards.

In response to a DEP Bureau of Air Quality request, we completed and submitted a Minor Permit Modification application relative to the RRF Title V Permit. The "Minor Mod" will revise an operating condition for the furnace dry lime injection system.

• Approval of Proposal for Phase 2 Capping Project - On motion by Kassees, second by Hammel and unanimous vote, the Board approved the Agreement with ARM Group for consulting engineering services for the Phase 2 Capping Project in an amount not to exceed $185,000.

OTHER BUSINESS

A letter recommending the reappointment of John K. Musser for an additional five years has been forwarded to the Lancaster County Commissioners.

The Board of Directors unanimously approved the Salary Plan for 2001.

The Nominating Committee presented the following slate of officers for 2001:

William K. Ebel, Chairman John S. Kassees, Secretary

John Musser, Vice Chairman Barbara B. Hammel, Treasurer

Hammel moved to close the nominations. Second by Varljen. A unanimous ballot was cast.

PUBLIC COMMENT

Tom Wilton of OMSL stated that Ogden Energy has changed its corporate name to Covanta Energy effective January 1, 2001.

ADJOURNMENT

On Motion by Kassees, second by Ebel and unanimous vote, the meeting adjourned at 10:10 A.M.

APPROVED BY THE BOARD OF DIRECTORS OF THE LANCASTER COUNTY SOLID WASTE MANAGEMENT AUTHORITY THIS 15^TH DAY OF DECEMBER, 2000.

John S. Kassees, Secretary